On Wednesday 2 April 2025 at Barnet Council Pension Fund Agenda item 17 “Rectification of situation pertaining to prepayments and subsequent repayments between the Council and the Pension Fund”
Source: https://barnet.moderngov.co.uk/documents/b41611/Supplemetary%20Agenda%2002nd-Apr-2025%2019.00%20Pension%20Fund%20Committee.pdf?T=9
Below are UNISON comments on the issues contained within the above report:
1. Unlawful Prepayment:
A prepayment of £20,477,000 made in 2020 may have been unlawful. While legal in principle, there’s no documentation showing it was authorised under the Council’s scheme of delegation or approved by any council committee or the Pension Fund Committee. This indicates a serious lack of internal control and proper authorisation.
2. Additional Payments and Repayments:
There were issues with additional payments and repayments between the Council and the Pension Fund, described as “unlawful payments into and out of the Barnet Pension Fund”.
The report discusses options for rectifying this, indicating that the initial actions were incorrect.
3. Lack of Documentation:
The inability to find documentation for the prepayment raises concerns about record-keeping and financial oversight
4. Risk of Tax Implications:
There’s a potential risk of tax liabilities arising from the various rectification options. The council is seeking clarification from HMRC, but the advice received indicates they are proceeding at their own risk.
5. Governance Concerns: The report highlights concerns about governance and the need to clarify the separation between the Pension Fund and the council as an employer.
In summary, the report reveals significant financial mismanagement issues, including potentially unlawful payments, inadequate documentation, and tax risks.
You can listen to the discussion at the start of the meeting here https://aisapps.mediasite.com/AuditelScheduler/Player/Index/?id=9441bcf4-2e3b-41f0-9fe0-7546f554ceaa&presID=588094cfbe6449019e339905e96970fa1d
The next Pension Fund Committee is 16 June 2025